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PLP Government Accounting Final Exam
PLP Government Accounting Final Exam
Government Accounting
Final Examination
True 1. All revenues of an entity shall be remitted to the National Treasury and included in the General Fund of
the National Government.
True 2. All government resources shall be used only in accordance with the law and only for public purposes.
False3. A canvass from least 5 suppliers is required for purchases amounting to P1,000 and above, except for
purchases made on official travel.
True 4. A financial asset is derecognized when the contractual rights to the cash flows from the financial asset
expire or are waived.
True 5. Specific identification shall be used for items that are not ordinarily interchangeable and those that are
segregated for specific projects.
False 6. Bearer biological assets are those that are to be harvested as agricultural produce or to be sold as
biological assets.
True 7. Investment properly is land or building held for rentals or capital appreciation.
True 8. An example of directly attributable costs are costs of employee benefits arising directly from the
construction or acquisition of PPE.
False 9. Intangible assets with indefinite life are amortized using the straight line method over a period of 10
years.
True 10. A provision is measured at the entity’s best estimate of the amount needed to settle the liability at the
reporting date.
1. B. It represents checks collected by government agency but not accepted by bank upon deposit.
a. State checks
b. Dishonored checks
c. Outstanding checks
d. MDS checks
2. C. This account is used to record the amount due from officers and employees and those outside of
government agencies for audit disallowances/charges, which may become final and executor.
a. Other receivables
b. Due from officers and employees
c. Receivables – Disallowances/changes
d. Accounts receivable
3. D. Closing entries
5. AThis account is used to record the subsidy received by the Regional Office/Staff Bureau and Operating Unit
form Central Office by way of funding check received/fund transfer through AGDBs/transfer of assets.
6. BThis term represents the allotment transferred by Central Office to its Regional Office/Staff Bureaus.
7. BThis is the report used to settle cash advances for travel and for other purposes except those cash advances
granted to regular/special disbursing officer.
a. Liquidation report
b. Report of disbursements
c. Liquidation report and report of disbursements
d. Report of check issued
8. BTo which account the balance of prior year’s adjustment is closed at the end of the year?
a. Government equity
b. Retained operating surplus
c. Project equity
d. Income and expense summary
10. DThis document is prepared when end users request for the issuance of inventories that are available on stock.
Problem #1 The Central Bureau of Internal Revenue directly received from the Department of Budget and
Management allotment for MOOE and its corresponding Notice of Cash Allocation in the
amount of P10,000,000 and P8,000,000, respectively. Of these receipts the Central Office
transferred the following to the Regional Office: Allotments, P5,000,000; Notice of Cash
Allocation, P4,000,000. Likewise, the Regional Office transferred part of the sub-allotment
and Notice of Cash Allocation to its Operating Unit. Allotment, P2,000,000; Notice of Cash
Allocation, P1,500,000.
Record the transactions in the books of Central Office, Regional Office and Operating unit.
Books of Central Office
1. The MOOE recorded only in the Registries of Allotments, Obligations and Disbursements (RAOD)
with the amount of 10,000,000.
Problem #2 A check issued by a taxpayer for real property tax in the current year in the amount of
P10,000 was dishonored by a bank upon presentation for payment. Accordingly, the official
receipt was cancelled. Upon notification of the cancellation, the taxpayer settled the
obligation.
Depreciation:
Office equipment 2,000
IT equipment 5,000
Motor vehicle 20,000
Sale of unserviceable motor costing P500,000, with accumulated depreciation of P50,000 for P400,000
Record the depreciation and disposal of the motor vehicle through sale.
Problem #4 On January 2, 2020, SEC entered into a ten-year non-cancellable lease requiring year-end payments of
P100,000. SEC incremental borrowing rate is 12% while the lessor’s implicit interest rate, known to
SEC is 10%Ownership of the property remains with the lessor at expiration of the lease. There is no
bargain
purchase option. The leased property has an estimated economic life of 12 years. What amount should
SEC
capitalize for this leased property on January 2, 2020
Annual Rental 100,000
Multiply by: PV ordinary Annuity of 1 6.145
PV of lease payments 614,500